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Job Support Scheme - Directors include themselves.

Can a director usually paid salary/dividend combo increase September wages to £2,093.76 (£697.92 cap

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Can a director usually paid salary/dividend combo increase September wages to £2,093.76 (£697.92 capped 1/3) so that they qualify for maximum government amount working a third of their normal time from 1st November?

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By Matrix
28th Sep 2020 07:30

I expect the usual wages are those submitted on an RTI by 23 Sept.

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Replying to Matrix:
JCACE
By jcace
28th Sep 2020 12:35

"“Usual wages” calculations will follow a similar methodology as for the Coronavirus Job Retention Scheme. Full details will be set out in guidance shortly. Employees who have previously been furloughed, will have their underlying usual pay and/or hours used to calculate usual wages, not the amount they were paid whilst on furlough."
Per guidance issued to date.

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By AWeb72
28th Sep 2020 09:06

I would expect such a flagrant intention to bend the rules is not allowed. The anonymous feature on this forum is not for such questions.

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By [email protected]
28th Sep 2020 09:23

Is it about bending the rules or utilising a scheme that might actually help the director/owners that have been missed out on any of the government other funding schemes, get a little bit of help?

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By John Isabel
28th Sep 2020 09:32

Quote:

Is it about bending the rules or utilising a scheme that might actually help the director/owners that have been missed out on any of the government other funding schemes, get a little bit of help?

Bending the rules, definitely.

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By AWeb72
28th Sep 2020 09:35

I would hope practicing members on here don't need to ask that.

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By James_S
28th Sep 2020 10:25

Notwithstanding the ethics, either the maths and/or understanding of the scheme (based on the details we know) are I believe incorrect.

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By fawltybasil2575
28th Sep 2020 11:45

The observation by James S is entirely correct, in relation to the mathematics. The correct monthly figure for the gross pay, to achieve the maximum Government claim, is £3125 (and thus accords exactly with the £37,500 per annum principle in the previous CJRS Scheme).

IMHO the Chancellor has introduced rules (albeit we have still to receive the full details) which render it extremely expensive (in effect severely "unfair") for the employer to pay an employee for 33% of their normal working hours (even more so when account is taken of the National Insurance and Pension contributions which probably will be required to be paid by the employer on the full employee's earnings), the "unfairness" reducing the greater that 33% is increased (forgive me if that wording appears obscure - a "pencil and paper" exercise will illustrate the point).

Basil.

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